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How to Work with Lawyers at a Startup

Both Sides of the Table

Shame about not getting it in legal writing that you owned the original IP. For a very small fee they can get your Delaware C corp registration, make sure that you have IP protection and ensure you didn’t make an early bumbling mistakes that you’ll pay for dearly in the next 7-10 years of hard work.

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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

If you have a very low gross margin (10-30%) it can be very hard to build a large, scalable business because you need to make a lot of sales to cover your operating costs. In startup world low GM almost always equals death which is why many Internet retailers have failed or are failing (many operated at 35% gross margins).

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The Importance of Due Diligence in M&A Transactions

Scott Edward Walker

Accordingly, there are typically three separate investigations: operational/strategic, financial and legal. The Schedules will also flesh-out particular issues that warrant additional diligence. The fundamental purpose of due diligence is to validate assumptions with respect to valuation and to identify risks.

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

John Berger, Director Operations & Impact Solutions, Toniic , observed that this has clear investor benefits: “ The grace period became a feature because it benefits investors in regions like the US where there can be tax differences between short and long term gains. Lenders sometimes take warrants. Flexible VC offers you this.

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Small Business Guide To Protecting Data From Disasters

YoungUpstarts

Their intellectual property that details their new product or service is exceedingly valuable and warrants the utmost in protection. If all of the firm’s content and IP is instead kept in the cloud, the earthquake will disrupt business operations, but the team can get back on its feet quickly.

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Venture Debt 101

Up and Running

This sometimes even includes your IP assets, though this is negotiable and should be part of your decision on the lender you choose to work with. Warrant coverage: the lender will request warrants over equity in the range of five percent to 20 percent of the value of the loan.

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Making Decisions in Context

Austin Startup

Startups often hand out shares, options, and warrants for employees and for contractors rendering needed services. Your business works as intended if you can attract customers that fit into the context of your operation. If you’ve got patent or other IP needs, you may want to engage specialists in those areas.